Coinbase-backed crypto exchange Vauld gets three-month protection from creditors
The Singapore High Court has granted Crypto lending platforma three-month protection from creditors.
Founded in 2018 by Darshan Bhatija and Sanju Sony Kurian, the Singapore-headquartered crypto lending platform provides its users with a customer-centric banking solution by leveraging blockchain.
As per the court hearing, Justice Aedit Abdullah granted the firm's parent company, Defi Payments Limited, a moratorium till November 7. During this period, the company’s 147,000 creditors cannot file legal action against the company, said a report by Bloomberg.
The firm had filed a petition on July 8 seeking a moratorium order and had requested for a six month moratorium for its parent company, Defi Payment Limited. According to Bloomberg, Justice Aedit Abdullahthat denied and stated that "I am concerned a six-month moratorium won't get adequate supervision and monitoring."
The judge also stated that an extension could be granted if the company makes a progress in engaging with its creditors.
As per previous reports, crypto lending platform Nexo is looking to acquire Vauld. On July 5, Nexo signed an indicative term sheet, with the intention to acquire Vauld and its assets.
On July 4, the firm announced that it had suspended all withdrawals, trading, and deposits on its platform due to “financial challenges”. Previously, on June 21, Vauld announced that it was reducing its workforce by 30 percent due to the current economic downturn.
The industry has been hit by snowballing issues since the collapse of stablecoin TerraUSD. In June, reports said that crypto hedge fund Three Arrows Capital was facing possible insolvency. Several crypto lending platforms, including Celsius Network and Voyager have halted withdrawals.
Edited by Megha Reddy